Home depot's price earnings ratio is 21.4
The market price per share is subtracted from the company's earnings per share to arrive at the P/E ratio. Earnings per share (EPS), a measure of a company's financial health, is the portion of its profit assigned to each outstanding share of its common stock.
The price-earnings ratio, sometimes referred to as the P/E ratio, P/E, or PER, measures how much a company charges for its shares to how much it earns per share. The ratio is employed to evaluate businesses and determine if they are over or undervalued.
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